InnoScience (Suzhou) Technology Holding (2577) investor relations material

Executive summary

• Revenue grew 50.6% year-over-year to RMB833.62 million, driven by strong demand in high-value sectors such as AI data centers, industrial, energy storage, and new energy vehicles.

• Gross profit surged 156.5% year-over-year to RMB97.08 million, with gross margin improving to 11.6% due to product mix optimization and cost reductions.

• Net operating cash flow turned positive at RMB168.6 million, reflecting improved profitability and operational efficiency.

• Loss for the period narrowed by 27.9% year-over-year to RMB309.1 million.

• Consumer electronics remained a stable revenue base, growing 26% year-over-year.

Financial highlights

• Revenue: RMB833.62 million, up 50.6% year-over-year; gross profit: RMB97.08 million, up 156.5% year-over-year; gross margin: 11.6%.

• Net loss: RMB309.1 million, a 27.9% reduction from the prior year.

• Operating cash flow: RMB168.6 million inflow, compared to RMB387.3 million outflow last year.

• R&D expenses: RMB185.1 million, up 14% year-over-year.

• Cash and cash equivalents rose to RMB1,578.1 million from RMB879 million at year-end.

Outlook and guidance

• Plans to expand 8-inch GaN wafer production capacity to 70,000 wafers/month by 2029 and accelerate process platform upgrades.

• Focus on high-value applications: AI computing, new energy vehicles, industrial energy, and consumer electronics.

• Continued global expansion and deepening of strategic customer collaborations, with strengthened overseas sales and technical support.